R2D2 Test Systems manufactures automated testing equipment. The company uses a job-order costing system and applies overhead on the basis of machine hours (MH). At the beginning of the year, estimated manufacturing overhead was $1,960,000, and the estimated machine hours were 98,000. Data regarding the current jobs worked on during January at R2D2 are presented below:

below:

Job Number Beginning Balance Direct Materials (DM) Direct Labour (DL) Machine Hours (MH)

XJ-107 $118,600 $4,000 $8,400 150

ST-211 121,450 2,500 12,160 300

XD-108 21,800 86,400 36,650 3,100

SL-205 34,350 71,800 32,175 2,700

RX-115 0 18,990 21,845 1,400

By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205.

Required:

1. What is the indirect cost allocation rate?

2.What was the total manufacturing overhead applied in January?

3.What was the COGS for January?

4.What was the ending Finished Goods balance?